Definition:
Concept Number: *034
English Master: Price-of-Nonconformance
Synonyms, Variations & Acronyms: none
Detailing
PONC is the “cost to find and fix Defects” between two defined points in a Systems-Engineering development Process (See figure below for a list of what costs could be included).
Illustrations
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Type
Examples
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Notes
Price-of-Nonconformance (What it costs to do things wrong)
• ReProcessing
• Expediting
• Warranty
• Unplanned Service
• Returns
• Overdue accounts receivable
• Rework
• Downtime
• Scrap
• Computer reruns
• Explanation time
• Excess inventory
1. In general, PONC increases the later in the implementation Process that a Defect is found. The relative costs can be expected to be 20:1 at the test stage (20) compared to the development stage (1); and 80:1 at a field-use stage (80) compared to development stage (1) [GILB93].
Keyed-Icons
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Drawn-Icons
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Related-Concepts
Process-Improvement *114
Rework *390
History-of-Concept
none
This Concept entered by Adore Shuko.